My parents put up most of the money for the down payment and they're crediting 10% of the rents as equity to me each month as payment for managing the property until we reach an equal equity position. 

They had the money in my bank account in a few days typical ACH time frame it seemed.

What if we need to borrow money to do some rehab before we move in???

@Brandon Green - if you "set up a S-corp holding company that owns the LLCs holding the rental properties", and both are passthrough entities, and sell property, wouldn't the money pass to the S-corp and trigger the unfavorable conditions?  

The reality is that you need money for a lot more than the down payment.

But I began this reply with IF, because if they are all cash-flow positive, I would personally not seek to pay any of them off early (depending on your age), and instead save that money to put towards obtaining additional properties.

Lot’s of folks (mostly rich) are making real money from Uncle Sam, gettin that government paper!

Yeah there's money to be made, but at what risk, and o yeah drunk people at the beach pose a high risk.

With residential properties and hard money lenders, they will usually have an option for financing the property's renovations as well.There are a couple of caveats: first, most lenders will require a property down payment.

Private money lender (a family member).